Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. william bat became a baseball enthusiast at a very

William Bat became a baseball enthusiast at a very early age. All of...

80.2K

Verified Solution

Question

Accounting

William Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage butiness. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $688.000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of retum is 9(present value factor of 7.16073). Estimated arnual ret income is as follow:
Revenue
$362500
Les:
\table[[Utility cost,$42000,],[Supplies,$10,000,],[Labor,143,000,],[Depreciation,72000,],[Other,40,500,307,300],[Net income,,355,000]]
Click here to view PV tables.
For this imvestment, calculate:
(a)
Vour answer is incorrect.
The net present value. (For caloulotion purposes, use 5 decinal places as disployed in the factor table provided. Round answer to 0 decimal places, es 5,275,
Net present value S
Attempts: 2 of 2 used
(b)
The intemal rate of retum (use the above table.)(Round answer to O decinal pilaces, es.15%)
Internal rate of return %
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

In the figure, a thin horizontal bar AB of negligible weight and length L = 3.2...

Statistics
1.2K views

Your leader wants you to evaluate the difference in cycle time between three different offices. Describe...

Statistics
1.2K views

Solve by substitution or elimination by subtraction or addit 42 15y 17 42 20y 52

Statistics
1.2K views

The company Digital Trends reported that 48 of Americans have shared passwords for TV and...

Calculus
1.2K views

How long does it take for an investment to double in value if it is...

Algebra
1.2K views

Given ATUV when ZV is the right angle and t 18 and u 25 the...

Accounting
1.2K views

Please help, I am so confused, I only could answer the first part. ...

Accounting
1.2K views

At the beginning of the year, Sheffield Corp. had total assets of $880,000 and total...

Accounting
1.2K views

Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a...

Finance
1.2K views

You would like to purchase a T-bill that has a $12,500 face value and is...

Accounting
1.2K views

Yin and Jordan form a Corporation together on March 22, 2022. Jordan transfers cash of...

Finance
1.2K views

Symon Meats is looking at a new sausage system with an installed cost of $450,000....